So I was lucky enough to lease an $90k car in Virginia before moving to California. Now BMWFS is charging me Cali taxes on top of the ~$5k in taxes I already “paid” to Virginia (which is rolled into my monthly). Of course VA and CA do not have a reciprocity agreement. Anything I can do about this…

your first and last sentence make a lot of sense - what is in between is an unnecessary political rant and unbecoming of “lease hacking pros here”

CA did nothing wrong, can you see if VA will refund any of the property tax for moving?

Even the start or end didn’t make any sense. There’s nothing illegal about a state charging sales tax based on its own laws. There’s no federal law against this. Only internet warriors think they can take this all the way to the SCOTUS. To the OP, make sure you’ve stopped the clock on property tax …

Scotus is compromised anyway, just like the rest of the entire federal government. Anyway… [Ron Paul Irs GIF]

California charges a use tax on the leased portion of an automobile. So unfortunately each lease payment made while the car is registered in California is subject to the tax. Virginia charges a sales tax on the full value of the leased vehicle at inception. So yeah, you’re looking at double taxat…

OP mentions it was a $90k car. Depending on what it is, they may view the additional lease tax as a small price to pay to avoid holding the bag on its depreciation.

[image] holeydonut: But, California allows a person who has paid sales tax in another state to deduct that sales tax from the use tax. I That would only apply if the car was purchased, not leased I believe (And done within 1 year of purchase)

[image] gasdoc: I just emailed the tax assessor for property taxes in VA about that issue too and mentioned this. You were supposed to notify the county tax dept as soon as you moved the car out of VA. Then they bill prorated prorated PPT. Also, it depends how your leasing bank handles PPT. S…

Whoops, I thought OP was in Maryland; not VA hah. California has a ~9% use tax … so unless he leased a massively underwater $90k BEV, I would imagine trying to reduce this use tax somehow would be worth it. I feel like the only lesson we can learn from all this is that leasing a vehicle in VA suck…

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